2004-12-09

NPM 153-2004

Requesting Entity: City of Malabon

Issues Concern: Proper Implementation of Republic Act 9184 and Its Implementing Rules and Regulations Part A

 

Details

1. Whether or not Negotiated Procurement may be resorted to by the City Government of Malabon in the acquisition of software and equipment.
R.A. 9184 and its IRR-A allow the use of alternative methods of procurement in highly exceptional cases as provided therein. Among the alternative methods relevant to the issue on hand is Negotiated Procurement under Section 53 of R.A. 9184 and its IRR-A.

Prescinding from the above discussion, this office opines that the City of Malabon may procure software and equipment by way of the alternative method of Negotiated Procurement on the basis that DDCI is an agency of the government. However, it shall ensure that the most advantageous price for the Government is obtained.


2. Whether Development Data Center Incorporated (DDCI), which is 100% subsidiary of Development Bank of the Philippines (DBP) may be considered as an agency of the government for purposes of compliance with R.A. 9184.
The Development Data Center Incorporation (DDCI), being a wholly owned subsidiary of Development Bank of the Philippines (DBP) and the latter being an agency of the government, is deemed under the law as an agency of the government. For purposes of compliance with R.A. 9184 and for other legal purposes, the former is merely an extension of the personality of DBP and necessarily the character of the latter as an agency of the government is likewise extended to DDCI.

The City of Malabon may procure software and equipment by way of the alternative method of Negotiated Procurement on the basis that DDCI is an agency of the government. However, it shall ensure that the most advantageous price for the Government is obtained.